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guide | Mortgage glossary
- situation which occurs when the amount loaned against a property
is in excess of the market value of the property.
- the income of a company or self employed business after making
full allowance for the expenses of running the business (and, in
the case of a limited company, corporation tax.) This should be
the amount available to the owners of the business for their own
benefit and consequently is the figure that can be used to calculate
their ability to service a mortgage.
- where net profit from a business decreases from one year to the
next. Many lenders will not lend in this situation, as in the future
the business may not provide sufficient income to cover the cost
of loan repayments. Capital raising remortgages are especially avoided
in this situation as the borrower may be seeking funds to shore
up a failing business.
- refers to new properties developed on green field sites. Can refer
to a single property or whole estates.
- the application is for a loan to replace the existing loan without
increasing the amount owing.
- pension scheme provided by an employer into which the employee
makes no payments.
- loan granted without making enquiries as to the borrower's income
or credit history.
Courtesy of UKMortgageangels.co.uk
- unemployed - not in employment or receiving any regular salary;
not self-employed. (Could be receiving state benefits.)